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1. President Milei presented the 2026 budget

In compliance with the legal deadline established by the Financial Administration Law, President Javier Milei sent the 2026 Budget Bill to the Chamber of Deputies. The text consists of 81 articles, which contain the guidelines for resources and expenditures for the next period, based on an estimated growth of 5% in gross domestic product (GDP), inflation of 10.1%, an average dollar exchange rate of $1,423, a primary surplus of 1.4% of GDP, and a financial surplus equivalent to 0.3% of GDP. However, this bill does not contain any clause relating to the tax treatment of losses. Meanwhile, he sent a second bill (on the National Commitment to Fiscal and Monetary Stability) that they will attempt to address in parallel. Likewise, the Executive sent a bill establishing that the General Budget of the National Administration must be balanced or in surplus, expressly prohibiting deficits. In the event of deviations during budget execution, the Chief of Staff must take corrective measures with priority in items not protected by law, informing Congress.

Infobae: Milei presentó el Presupuesto 2026: “Más allá del éxito de nuestra gestión, entendemos que muchos no lo perciban en su realidad”

2. The Chamber of Deputies rejected Milei’s vetoes

Amid massive student protests outside Congress, the Chamber of Deputies insisted on passing two laws vetoed by the executive branch (the Pediatric Health Emergency Law in response to the crisis at Garrahan Hospital and the University Financing Law), for each of which the opposition secured a majority of more than two-thirds. It also created a special commission to investigate deaths linked to contaminated and/or adulterated fentanyl in the health system and called on Constitutional Affairs to address the reform of the parliamentary control regime of DNUs and requests for questioning Karina Milei over the bribery case.

La Nación: La oposición logró resistir en Diputados los vetos de Javier Milei al financiamiento del Garrahan y las universidades

3. The Senate meets to discuss the veto of the ATN

The Senate opposition prevailed and will bring to the floor the rejection of the Casa Rosada’s veto on the law that activated an automatic distribution of National Treasury Contributions (ATN), a measure pushed weeks ago by the 23 governors and the City of Buenos Aires. If the motion moves forward, for which a two-thirds majority is required, the decision will be left in the hands of the Chamber of Deputies. They also agreed to discuss the Nicolás Law against malpractice; the incorporation of Spinal Muscular Atrophy (SMA) into the neonatal screening program; the Road Safety Law, an amendment to the Penal Code to toughen penalties for death in traffic accidents; the Sofía Alert Law, which systematizes rules to facilitate the search for missing persons; international agreements on double taxation and preventing tax evasion with France and Austria; the repeal of the Kirchner Law on fire management; and a package of declarations of historical monuments.

Infobae: Senado: la oposición se impuso y habrá sesión el jueves para rechazar el veto al reparto automático de ATN

4. President Milei traveled to Paraguay and was received by his counterpart Santiago Peña

President Javier Milei held a bilateral meeting with his Paraguayan counterpart, Santiago Peña, in Asunción. The Argentine president was received at the Government Palace by his Paraguayan counterpart, Santiago Peña, after participating in the opening of the Conservative Political Action Conference (CPAC). The Argentine head of state also gave a speech at the Honorary Session of the National Congress of the Republic of Paraguay, before legislators and members of the Paraguayan Supreme Court of Justice.

Difusión presidencial: El Presidente Milei mantuvo una reunión bilateral con su par de Paraguay, Santiago Peña

5. The dollar broke through the ceiling of the band and the Central Bank had to intervene

For the first time, the market tested the government’s exchange rate scheme and led the Central Bank (BCRA) to intervene, selling US$53 million. On a day marked by protests in Congress and the rejection by Deputies of the veto on university funding and the Garrahan Hospital, the official wholesale dollar reached the ceiling of the floating band for the first time. After several weeks of exchange rate turbulence, all investor attention was focused on the official wholesale exchange rate, which reached $1474.40 on Wednesday at around 1 p.m. This meant it had reached the ceiling set for the Central Bank to sell reserves, as provided for in the latest agreement with the International Monetary Fund (IMF).

La Nación: El dólar alcanzó el techo de la banda de flotación y el Banco Central vendió US$53 millones